Fraud Claim Based on an Insincere Promise to Perform a Contract Dismissed

On March 18, 2025, the First Department issued a decision in Cedar Capital Mgt. Group Inc v. Lillie, 2025 NY Slip Op. 01569, holding that a fraud claim based on an insincere promise to perform a contract should be dismissed, explaining:

Supreme Court also properly dismissed the fraud-based claims against all defendants. The sparse allegations of material misrepresentations, which are focused on a characterization of the purported investments being a “scam” rather than a legitimate investment opportunity, were not sufficiently particular to allege fraud. In addition, the allegations underlying the fraud causes of action state only that defendants made general promises to meet payment obligations. Thus, the fraud claims allege nothing more than an insincere promise to perform under a contract. Indeed, the fraud claims seek damages identical to those recoverable for breach of contract.

(Internal citations omitted).

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